Iie ffiid~lipn Dailjj Wednesday, January 30, 2008 michigandaily.com Looking to settle suit, coach files -letter with court Rodriguez letter says he can pay $1.5 million if ordered by court By ANDY KROLL and COURTNEY RATKOWIAK Daily StaffReporters Michigan football coach Rich Rodriguez is using his new Ann Arbor ties in an attempt to settle his lawsuit with West Virginia. Through the Bank of Ann Arbor, a bank founded by Univer- sity Athletic Director Bill Martin, Rodri- guez filed a $.5 - million letter of credit yesterday with the fed- eral court for the Northern District of West RODRIGUEZ Virginia. The letter of credit says Rodriguez has the means to pay that amount if the court orders him to pay West Virginia University, where he was head football coach until last month. The figure comes from the first amendment to Rodriguez's con- tract with West Virginia, which said he must pay the university $1.5 million in "liquidated dam- ages" if he terminated his con- tract with the university without breach between Aug. 31, 2007, and Aug. 31, 2008. Rodriguez later signed a second amendment on his contract, which raised the buyout payment to $4 million. West Virginia is currently suing Rodriguez for $4 million, the amount stated in the second amendment, claiming he breached the contract by accepting the head football coach position at Michi- gan. "Coach Rodriguez is a respon- sible person," Rodriguez's agent Mike Brown said in a statement released to ESPN. "This is a good faith effort to move the process and communication lines forward so all parties can concentrate on their future endeavors." The bank, of which Martin is also the chairman of the board, will be responsible for paying West Virginia the $1.5 million on or before April27 if the court finds Rodriguez liable. It's unclear exactly who would be responsible for repaying the bank. When Michigan men's bas- ketball coach John Beilein left West Virginia for Michigan in April, he said in his introductory press conference that Michigan wasn't responsible for paying his $2.5 million buyout. Assistant Athletic Director Bruce Madej declined to comment onthe creditoffered bythe Bank of Ann Arbor, saying, "I know that's where Rich does his banking." According to the conflict of interest clause in the Bank of Ann Arbor Board of Directors Code of Ethics, "All directors should avoid situations that could result in a conflict of interest that concerns either the bank or its customers. Personal interests which might directly or indirectly affect the proper exercise of judgment on the part of the directors should be avoided." In his second resignation let- ter, dated Jan. 10 and obtained by the Charleston (W. Va.) Daily Mail, Rodriguez claimed West Virginia breached the second amendment of his contract by fail- ing to honor "verbal agreements" made over a handshake between Rodriguez and West Virginia Uni- See RODRIGUEZ, Page 7A Michigan Gov. Jennifer Granholm addressed legislators and the media yesterday in Lansing. During her talk, she said higher education will aid the state's ailint economy Granhoim: State can rebound Gov k LAN of the S Jennif' tors to struggl the sta accessi "No way to ple wil al econ quality T.calls education and training for every worker," Granholm said. ey to recovery With 7.4 percent of Michigan workers unemployed, the gover- for Michigan nor promised to offer aggressive tax incentives for businesses to By JULIE ROWE expand and create jobs in the state. DailyStaffReporter Granholmsaid the rapidlygrowing alternative energy industry should ISING - In her sixth State play a large role in returning Mich- tate address last night, Gov. igan to economic stability. er Granholm asked legisla- "If we do this right, Michigan help her rebuild Michigan's can be the alternative energy capi- ling economy by making tol of North America," Granholm te's education system more said. "If we do it right, we'll create ble and rigorous. thousands and thousands of jobs." one doubts that the best The majority of these jobs will ensure that Michigan's peo- require more than a high school 1 succeed in the face of glob- diploma, but only about30 percent comic change is to ensure a of Michigan residents hold a post- - education for every child secondary degree, accordingto the 2000 U.S. Census. "To create new good jobs, we have set a bold course of action to diversify this economy and to give our people the skills and education they need, not only to cope in this changing world, but to thrive init," Granholm said. In order to prepare Michigan residents to fill these job and "give Michigan the best-educated work force in the nation," Granholm said she will continue to work to meet the goal set in 2004 to double the number of college graduates in Michigan by 2014. "We'll make progress through- out our education system, from preschool to grad school to on-the- job training," Granholm said. Granholm said she is "looking forward" to signing bipartisan legislation that will provide full tuition scholarships for students across the state to receive post- secondary degrees. The bill is modeled after the privately funded Kalamazoo Promise scholarship program, which provides money for students enrolled in public schools in Kalamazoo to pay for a college degree in Michigan. Fund- ing would come from property taxes in cities and towns and from private donations. This program comes two years after the Michigan Promise schol- arship was created, which Gran- holm proposed in her 2005 State of the State address. The Michi- gan Promise scholarship provides See STATE, Page 3A STUDENT GOVERNMENT In close vote, MSA decides against sending Prop. 2 e-mail E-mail would have told students about upcoming court date By LINDY STEVENS Paily StaffReporter By a 17-16 tally, the Michigan Student Assembly voted down a measure last night that would authorize sending a mass e-mail to students containing information about upcominglawsuits challeng- ing Proposal 2, the ballot initiative that banned the use of many forms of affirmative action in the state of Michigan. Next week, the Federal District Court in Detroit will hear argu- ments on whether to hold a full trial for the lawsuits challenging the constitutional amendment. The e-mail would encourage stu- dents to attend the hearing, sched- uled for Feb. 6 in Detroit. Several MSA representatives who opposed the resolution said they did so because the spe- cific language of the e-mail was unavailable when the vote took place. - "If the e-mail text was there, I probably would have voted for it," said Rackham representative Michael Benson, chair of the Rules and Elections committee. Art and Design representative Liana Mulholland, who sponsored the resolution, said MSA President Mohammad Dar would write the e-mail if the vote had passed. MSA representative Ashley See VOTE, Page 3A ETHICAL APPAREL New initiative pushing groups to buy labor- and environment-friendly gear Only about 20 students attended a rally on the Diag yesterday to pressure University officials to move the spring com- mencement ceremony back into the Big House. Low turnout at Big House rally disappoints organizers MSA committee wants campus groups to buy 'Fair Tees' By CHARLES GREGG-GEIST Daily StaffReporter The Michigan Student Assembly has started an initiative that would encourage student groups to buy their apparel from unionized fac- tories. LSA sophomore Aria Everts and LSA senior Austin Srdjak, both members of MSA's Peace & Jus- tice Commission, are spearhead- ing a campaign called "Fair Tees" to encourage all campus groups to purchase their T-shirts from facto- ries that set high ethical and envi- ronmental standards. Groups like Students Organiz- ing for Labor and Economic Equal- ity have criticized the University for ordering University-licensed apparel from factories found to have used unethical labor prac- tices. Everts said her main concern with traditional factories was the environmental harm they inflict by using unsafe dyes and inorganical- ly grown cotton, along with having dangerous working conditions and low wages for employees. "It's about environmental justice See SHIRTS, Page 7A Many students are less Concerned now that ceremony will be on campus By ELAINE LAFAY Daily StaffReporter Students who went to the Diag yesterday afternoon for a planned rally in favor of moving spring commencement back to Michi- gan Stadium might have been disappointed. As it turned out, the rally was a cluster of maize- clad students huddled around a medium-sized banner. The lackluster display of sup- port marked the second attempt in recent weeks to organize a large campus rally for students to push University officials to move the graduation back into the Big House. Neither turned out quite as planned. The first rally was planned for Jan. 17 in Regents Plaza but was canceled because of bad weather. Earlier this month, University officials announced that the cer- emony would be held in Eastern Michigan University's Rynearson Stadium because of ongoing con- struction at Michigan Stadium. About two weeks ago, adminis- trators said they would recon- sider moving the commencement back to Michigan Stadium or See RALLY, Page 7A TODAY'S WEATHER H I:17 GOT A NEWS TIP? LO: 13 Call 734-763-2459 or e-mail news@michigandaily.com and let us know. ON THE DAILY BLOGS How soap operas benefit from the writers' strike MICHIGANDAILY.COM/THEFILTER INDEX NEWS...... vol. CXVIII, No. 86 OPINION. 2008TheMichigan Daily ARTS....... michigondoily.com ...............2A CLA SSIFIEDS......... 4...................4A SPO RT S ,........... .....................5A THE STATEMENT... .. A .PA ... . . 11B ti A